Securities & Futures Commission of Hong Kong

Contract Notes, Statements of Accounts and Receipts Rules

Q1:

Hong Kong Futures Exchange (“HKFE”) will introduce an after-hours trading session (“AH Session”) after the close of the regular trading session (“R Session”).  Under HKFE’s operating model of after-hours futures trading (“AHFT”), all trades transacted in the AH Session will be registered with the clearing house as the following day’s trades (“T+1 trades”) and cleared together with trades transacted in the R Session on that following business day. In the circumstances, can an intermediary report the trades transacted in AH Session as T+1 trades in contract notes, daily and monthly statements of account?

A:

In order to facilitate intermediaries to participate in AHFT and having regard to the practices in major overseas futures markets in respect of after-hours trades, the SFC will regard it as acceptable for intermediaries to report trades transacted in the AH Session as T+1 trades in contract notes, daily and monthly statements of account prepared under the Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules. Intermediaries which provide AHFT services and intend to report trades transacted in the AH Session as T+1 trades in contract notes, daily and monthly statements of account should inform their clients accordingly.

3.5051 s